Ministry of Finance purifies weak securities companies

At the regular Government press conference on the afternoon of January 5, Deputy Minister of Finance Nguyen Duc Chi said that the bond market in 2023 has many bright spots in terms of the legal framework.

Specifically, in 2023, the Government issued Decree 08, which includes provisions on suspending the validity of some provisions of Decree 65, allowing businesses to negotiate with investors to handle maturing bonds, ensuring the principles of harmonious, free, and shared interests.

Regarding market organization, in July 2023, the Ministry of Finance officially launched the private corporate bond trading market, focusing on operations and by December 31, the total transaction value in the organized bond market was VND 218,000 billion, with an average transaction value of VND 1,880 billion/session.

The Ministry of Finance has directed all functional units of the Ministry to strengthen inspection and market review work and inspect both issuing and consulting enterprises.

By the end of 2023, 81 enterprises will have issued bonds worth VND269,500 billion. Enterprises will also allocate resources to pay off maturing bonds, negotiate with investors when restructuring and extending bonds to reduce the pressure of paying principal and interest on bonds.

Regarding the stock market, Mr. Nguyen Duc Chi informed that in 2023, the Ministry conducted 67 inspection teams and issued 412 penalty decisions with a total fine of 37.2 billion VND.

The Ministry of Finance has directed units to promptly coordinate with the State Securities Commission to conduct inspections of many auditing companies approved to review financial reports, strictly handling violations by enterprises and auditors to ensure market correction.

"The Ministry of Finance has carried out a purge of weak and ineffective securities companies and fund management companies. In 2023, the Ministry handled violations of 6 securities companies, put 1 securities company under control and 2 securities companies under warning," said the Deputy Minister of Finance.

Notably, the Ministry of Finance has synchronously deployed a database on transactions, transfers and investors, connecting investor data with the citizen database to manage and monitor the stock market.

Regarding the results, the VN-Index as of December 29, 2023 is 1,129 points, up 12% compared to the end of 2022, liquidity in the stock market reaches 17,500 billion VND per session and the market capitalization is estimated at 6,000,000 billion VND, up 9.5% compared to 2022, equivalent to about 62% of GDP in 2022.

Regarding upgrading the stock market, in 2024, the Ministry of Finance, together with relevant ministries and branches, will proactively and drastically implement many different solutions to soon achieve the standards for upgrading the stock market.

From there, propose credit rating organizations, stock market rating organizations to decide to upgrade the stock market...

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